UnitedHealth Group Incorporated (UNH)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 58,263,000 | 54,513,000 | 42,383,000 | 38,648,000 | 36,808,000 |
| Total stockholders’ equity | US$ in thousands | 98,919,000 | 86,347,000 | 76,479,000 | 70,539,000 | 62,162,000 |
| Debt-to-equity ratio | 0.59 | 0.63 | 0.55 | 0.55 | 0.59 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $58,263,000K ÷ $98,919,000K
= 0.59
Unitedhealth Group Inc's debt-to-equity ratio has shown a fluctuating trend over the past five years, ranging from 0.64 to 0.74. The ratio decreased from 0.71 in 2019 to 0.64 in 2021, indicating a lower reliance on debt financing relative to equity during that period. However, there was a slight uptick in 2022 and 2023, reaching 0.74 and 0.70, respectively.
A debt-to-equity ratio below 1 typically suggests that the company relies more on equity financing than debt financing, which can be viewed as a positive indicator of financial stability. Unitedhealth Group Inc's ratios over the years all fall below 1, indicating a conservative approach to leverage.
Overall, the company's debt-to-equity ratio has been relatively stable, with minor fluctuations within a manageable range. It suggests that Unitedhealth Group Inc has maintained a balanced capital structure with a prudent mix of debt and equity to support its operations and growth strategies.
Peer comparison
Dec 31, 2023